menu_open Columnists
We use cookies to provide some features and experiences in QOSHE

More information  .  Close

The next fossil fuel shock is on its way

45 0
20.07.2026

The eventual end of hostilities involving Iran, whenever it comes, will undoubtedly be welcomed across the world. Energy markets will stabilize, shipping through the Strait of Hormuz will regain a measure of normalcy, and governments will breathe easier after weeks of uncertainty. The latest crisis has once again exposed an uncomfortable reality: the global economy remains tethered to a fossil fuel system whose most critical supply routes lie in some of the world’s most volatile regions. For decades, the Strait of Hormuz has symbolized this fragility. Roughly one-fifth of the world’s traded oil passes through the narrow waterway, making it one of the most strategically significant maritime chokepoints.  For countries such as Pakistan, this reality carries important implications. Pakistan remains heavily dependent on imported oil and liquefied natural gas to meet its energy needs. Every major increase in international energy prices widens the import bill, places additional pressure on foreign exchange reserves, weakens the rupee and fuels domestic inflation. The economic consequences are not confined to energy consumers alone; they ripple through transport, manufacturing, agriculture and household budgets. Energy security is no longer simply about securing adequate supplies of oil and gas. It is increasingly about reducing dependence on fuel sources whose availability and price are shaped by geopolitical events beyond national control. Pakistan possesses significant renewable energy potential, particularly in solar and wind power. The rapid growth of distributed solar installations over recent years demonstrates both the commercial viability of renewable technologies and the willingness of consumers to invest when policy signals remain supportive. Greater investment in grid modernization, battery storage, transmission infrastructure and domestic renewable generation would not merely advance climate objectives; it would strengthen economic resilience by........

© The Patriot